South Korea Declines Bitcoin as reserve Asset
On March 17,2025,the Bank of Korea dismissed the idea of adding Bitcoin to its reserves. The central bank stated it has no interest in acquiring Bitcoin,citing high volatility as the main reason.
Earlier in March, South KoreaS Democratic Party urged the Bank of Korea to explore Bitcoin as a reserve asset, following the U.S. government’s move. However, the bank responded negatively. A representative explained that Bitcoin’s price is too unpredictable, resembling a roller coaster. This volatility makes it unsuitable as a reserve asset, which should be stable and instantly usable.
Other countries like the European Central Bank, Switzerland, and Japan also rejected Bitcoin for similar reasons. They cited issues with safety, liquidity, and alignment with national reserve strategies.
South Korea is a crypto-friendly nation with legal and regulated exchanges. Nearly 50% of Koreans in their 30s are crypto investors. Despite this, the country remains cautious about Bitcoin as a reserve asset.
Some crypto enthusiasts argue that officials in these countries don’t fully understand Bitcoin’s potential.They believe that rejecting Bitcoin now is like shorting the internet in 2000. However, conservative central banks have strict criteria for reserve assets, and Bitcoin doesn’t meet these standards.
Time will tell if the U.S. and other Bitcoin-leaning nations’ approach is justified. For now, many countries remain cautious, prioritizing stability and safety in their reserve assets.
